Now, before the passive investing diehards defenders roll in, I’d like to say that I passively invest upfront in this article.
I’m one of you. We’re on the same team. I buy Irish-domiciled Index Funds – specifically CSPX – and intend them to hold them for the long run. I also hold some 20% of my portfolio in the much scorned STI-ETF.
And I must say, I get the appeal.
Passive index investing through Indexed Mutual Funds or Exchange Traded Funds have been lauded as the Holy Grail of retail investing.
Low cost, market returns, and pretty much what you see is what you get transparency. The most common index used to highlight the magnificence of this strategy is usually the S&P 500. A broad based market cap equity index that tracks the biggest 500 companies listed in the US stock exchange.
So all good so far, why should anyone consider anything otherwise?...